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I don't have much technical knowledge of AI since I avoid it as much as I can, but I imagined that it would make sense to store the training data. It seems that it is beneficial to do so after all, so I presume that it's done frequently: https://ai.stackexchange.com/questions/7739/what-happens-to-the-training-data-after-your-machine-learning-model-has-been-tra
My understanding is also that generative AI often produces plagiarized material. Here's one academic study demonstrating this: https://www.psu.edu/news/research/story/beyond-memorization-text-generators-may-plagiarize-beyond-copy-and-paste
Finally, I think that whether putting massive restrictions on AI model creation would benefit wealthy corporations is very debatable. Generative AI is causing untold damage to many aspects of life, so it certainly deserves to be tightly controlled. However, I realize that it won't happen. Just like climate change, it's a collective action problem, meaning that nothing that would cause significant impact will be done until it's way too late.